Taiwan's economy is likely to grow more slowly than previously forecast this year and next, the statistics office said on Tuesday, as it also cut its exports outlook due to global inflation, rate rises and China's zero-COVID policy.

Gross domestic product (GDP) for 2022 is now expected to be 3.06% higher than last year, the Directorate General of Budget, Accounting and Statistics said, revising down the 3.76% forecast it issued in August.

That would mark a slowdown from the 6.45% logged for 2021, which was the fastest growth rate since the economy expanded 10.25% in 2010.

The statistics agency now sees 2022 exports up 8.73% on last year, compared with 13.51% predicted earlier.

For next year, it said it saw 2023 GDP expanding 2.75% compared with a prior estimate of 3.05%, while exports would contract 0.22%, compared with the 2.64% expansion previously predicted.

The office also marginally revised up its 2022 inflation outlook. It sees 2022 consumer prices 2.94% higher than last year, compared with a previously forecast rise of 2.92%, though it added that 2023 would show an increase of 1.86%, compared to a previous forecast of 1.72%.

In the third quarter, GDP was up by a revised 4.01% on a year earlier, growing slightly more slowly than indicated in a preliminary reading of 4.1%, the agency said. (Reporting by Jeanny Kao and Ben Blanchard; Editing by Ana Nicolaci da Costa)